On Monday, DiDi, a Chinese ride-hailing service, announced that it is ceasing operations in South Africa. The ride-hailing behemoth has been in the country for a year, with its ups and downs.
According to TechCrunch, the corporation has provided no explanation for its abrupt pullout from the South African market. On Friday, April 8, 2022, the company’s operations in South Africa came to an end.
“Our aim has been to ensure a smooth transition for all and would like to take this opportunity to thank our employees, drivers, riders, and partners for the kindness and support shown to DiDi,” a Didi South Africa spokesperson said.
According to reports, the e-hailing service provider stated that it is trying to expand into new markets, such as Egypt, where it would open later in 2021. It will also make its debut in Nigeria soon. It is currently active in 16 countries throughout the world.
“We have re-evaluated where we can make the most positive impact in the short-term and are focusing on developing even deeper capabilities in other existing markets,” the SA spokesperson continued.
According to claims, the ride-hailing behemoth expected to compete on the same level as Uber and Bolt, but things didn’t go as planned. These two ride-hailing services are the most popular e-hailing services in South Africa right now.
DiDi’s abrupt departure comes after South African e-hailing service providers demanded that the government regulate the business and secure their safety. The drivers’ complaints included exorbitantly high gasoline prices, which they blamed on Russia’s and Ukraine’s war.
Another source of disagreement was that ride-hailing companies were purportedly charging exorbitant commissions, resulting in drivers receiving little remuneration for their efforts. They also sought to get rid of ride-hailing businesses’ various applications’ marketing and discounts.
